Currencies in emerging markets slid following concerns sparked by the current selloff in the Turkish Lira, which is spreading to other countries. The Turkish Lira depreciated over 10% since yesterday against the United States Dollar after policy corrections from the nation’s central bank failed to alleviate the nation’s looming debt issues, causing investor fears to worsen. The selloff in the Turkish Lira is creating a contagion effect on other emerging economies such as South Africa, India, Mexico, and Argentina. That has further driven a widespread selloff in these markets as investors are forced to sell risky assets to offset possible losses.
